2018 is not favorable for Bitcoin, as in its first-half BTC price has seen only downfall, its price fall has caused losses to starting-up BTC based businesses which also includes mining business.

Due to Constant fall in prices Mining Bitcoin and some other crypto has become unfeasible or unsustainable and is affecting the business of Mining Firms and Farms negatively and this time we have a big name join the list Hashflare.

Hashflare, a cloud mining company created by the specialists from HashCoins in 2015 based in Edinburgh Scotland, UK sent an Email to all its members that due to constant loss in mining they are closing down BTC mining for the meantime(until profitable).

Here we are posting Exact E-mail they sent.

“Dear users!

As you know, the last few months have been a difficult time for the cryptocurrency market, which has also affected the operation of our service.

We have made every possible effort in order to resolve the problem that has arisen – for instance, we have considered a variety of technical solutions, which would have allowed us to lower expenses related to maintenance and electricity. However, due to the general instability of the market, the actions we have taken could not significantly influence the current situation.

For over a month our users encountered a situation when the payouts were lower than the maintenance fees, resulting in zero accruals to the balance. As of 18.07.2018, the payouts were lower than maintenance for 28 consecutive days.

 

 

BTC mining continues being unprofitable, in light of which we would like to inform you that on 18.07.2018 we were forced to start disabling SHA hardware and today, on 20.07.2018, stop the mining service of active SHA-256 contracts in accordance with clause 5.5 of our Terms of Service, which are required to be accepted when creating a purchase and are the basis of concluding the contract.

We expect that the cryptocurrency market situation will stabilize in the nearest future and we will be able to offer our users new advantageous solutions.

We will continue to inform you about any changes. Stay tuned for updates!

Respectfully,

 HashFlare team”

On visiting Hashflare website we found out that Except ETH mining they were out of stock in all other 4 mining services LTC, BTC, ZEC, DASH, It is possible that other 3 mining services might be also in loss or unprofitable except only ETH.

While Blackrock’s recent entry in Crypto market has given it a little jump up , still if its unprofitable for a mining firm to operate for over a month than doing calculations we found Cost of creation of a BTC is above 7300 US$ and current market is discouraging mining firms to create more bitcoin which might cap the supply of BTC .

Aftermath

Hashflare might be out of business in BTC mining contracts but still a lot of Firms/pools are in with efficient hardware, still they are operating on thin margins and since price is not surging much ahead its possible that they may also go out of running their miners, except for those who are mining for future and not today, if miners go out of operations than for a short while much of freshly created BTC (1 day=1800 freshly minted BTC) will not be available to sell in market supporting current price , but soon BTC network will adjust to low difficulty but this will give a pause to falling prices however transaction fees can shoot up higher.

Overall this can give a positive boost to BTC prices for some time, while some miners rest.